Closing the Gender Pension Gap: Gina Miller’s Call for Women’s Financial Independence

BUSINESS

Closing the Gender Pension Gap: Gina Miller’s Call for Women’s Financial Independence

26 NOV 2024

The Guardian recently highlighted Gina Miller’s campaign addressing the gender pension gap and the critical importance of women achieving financial independence. Known for challenging the UK government over Brexit, Gina Miller is now urging women to invest in their futures, both for financial security and as a safeguard against potential abuse.

Gina Miller: ‘Financial domestic abuse is chronically unreported.’ (Photo credits: Aaron Chown/PA, left. Ben Stansall/AFP/Getty Images, right )

Miller’s research through her wealth management company, MoneyShe, reveals that 75% of women are uncertain about affording a comfortable retirement, with many trapped in situations or relationships due to a lack of financial autonomy. The study coincides with the International Day for the Elimination of Violence Against Women, emphasizing that financial independence is a fundamental aspect of safety and freedom.

The report highlights stark realities: women typically retire with just £69,000 in pension savings, compared to men’s £205,000, and a third of women feel unable to leave their circumstances due to financial constraints. This disparity is exacerbated by lower average pay, career breaks for caregiving, and financial dynamics in relationships. Divorce further strains women’s finances, with their income dropping by 33% post-divorce, compared to 18% for men.

Miller, who has personally experienced financial abuse, explains how dependency on a partner for financial management left her vulnerable. “It didn’t happen overnight,” she recounts, emphasizing that financial control is a form of coercive control, which remains underreported.

One key issue is that women are more likely to save in cash rather than invest. According to the study, 37% of women do not invest, with concerns about risk and complexity. Meanwhile, fewer women hold stocks and shares Isas or personal pensions compared to men. “Women are saving more, but saving in cash means losing value over time due to inflation,” Miller warns, advocating for investments like stocks and shares for long-term growth.

(Photo credit: Getty images)

The cultural narrative also plays a role. Miller is alarmed by rising misogyny and social media messages targeting young women with outdated ideals, discouraging independence. She urges women to consider financial independence not just for emergencies but as a “freedom fund.”

Experts like Sarah Coles of Hargreaves Lansdown stress the importance of starting small, such as with regular contributions to a multi-asset fund or global tracker. For women hesitant to invest, she advises engaging with resources like articles, videos, or podcasts to build confidence.

Coles, a survivor of economic abuse herself, underscores the necessity of having savings and investments in one’s own name. “All relationships eventually end, whether through a split or death,” she says. “It’s crucial to understand your finances before that happens.”

Miller’s call to action resonates as both a warning and an empowering message: by taking control of their finances, women can protect their futures and ensure a secure, independent life.